While the intraday 1 min charts are responding in the averages and they have managed to hold on to the 5 min positive divergences
(along the lines of enough gas in the tank for a decent 1 to 1+ day bounce) I won't add anymore long risk beyond the spec. positions opened yesterday without stronger than normal probabilities as the chances of a divergence being run-over, especially with events like Yellen's comments earlier today
(which I just wrote about less than a week ago "The F_E_D will sacrifice the market for a weaker $USD" on the carry trade closeout) are far too great.
When you see some of the charts of core short positions, you'll understand without a second thought.
It appears to me that a $USDX counter trend bounce attempt is still in the cards as signals for EUR/USD are failing and Euro/$USD futures back that up near term. This should have some effect on oil as well to the downside near term.
IWM 1 min responding in a positive
IWM 5 min maintained its positive with a broader lateral base.
QQQ 1 min responding with a leading positive divergence,
excellent timing indication which has been lagging all day.
QQQ 5 min positive for a bounce still in place.
SPY 1 min positive responding
SPY 5 min positive still in place.
The EUR/USD has a negative divergence here.
The Yen futures also look like they'll fall so expect a USD/JPY bounce as well.
And intraday $USD futures have stayed positive, along the lines of the small counter-trend $USD bounce also expected...
Crude futures negative.
The stronger $USD should also pressure oil lower.
At this point, I've put in a lot of upside price targets for trades I'm interested in entering if they come to us, I've spent most of the day putting these in.
I'll post a bigger picture view as we have been too concentrated on the myopic intraday or day to day view while the market is turning right now.
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